CUET UG 2025 — Accountancy Partnership

Given information:

• Capital Employed = Rs. 5,00,000
• Normal Profit = Rs. 60,000

The relationship between Normal Profit, Capital Employed, and Normal Rate of Return is:

Normal Profit = Capital Employed × $\frac{\text{Normal Rate of Return}}{100}$100Normal Rate of Return​

Rearranging to find Normal Rate of Return:

Normal Rate of Return = $\frac{\text{Normal Profit}}{\text{Capital Employed}}$Capital EmployedNormal Profit​ × 100

Substituting the values:

Normal Rate of Return = $\frac{60,000}{5,00,000}$5,00,00060,000​ × 100

Normal Rate of Return = 0.12 × 100 = 12%

The normal rate of return is 12% when normal profit is Rs. 60,000 on a capital employed of Rs. 5,00,000.

Correct Option: 1 (12%)